Agenda item

This report seeks approval of the Internal Audit Plan for 2013/2014.

The Committee received a report of the Head of Finance and Shared Services introducing the Audit Plan for 2013/14. The Head of the Shared Internal Audit Service, introduced the plan to the Committee. She advised that the key point was that this would be a year of transition where the SIAS was picking up responsibility for internal audit. Discussions with officers had already begun but the plan may need further refinement as these discussions continued.

The Head of Finance and Shared Services asked whether there had been a dialogue with Grant Thornton. The Head of the Shared Internal Audit Service responded that there was a good working relationship with them as Grant Thornton were the External Auditors for a number of the district councils in the service. A formal meeting to discuss Watford would be arranged.

In response to a question from Councillor Khan about the scale used in risk assessments, the Head of the Shared Internal Audit Service explained that the A-D scale was used for simplicity. She explained how the risk assessment determined whether an audit was included in the plan.

The Chair asked whether the assessment of the risks could be considered subjective. The Head of the Shared Internal Audit Service replied that this was the case whether the assessment was made by the auditor alone or by the auditor in consultation with the relevant manager. She added that the auditors also considered how an audit might add value to a service.

Councillor Brandon highlighted three areas where the audits had been deferred and he questioned whether they should be a higher priority. These were housing lettings, the expenditure of the parking reserve and the new commissioning framework. The Head of the Shared Internal Audit Service responded that these were good reasons to re-evaluate the plan although the areas included for 2013/14 were also considered to be important. She would discuss these areas with the Head of Finance and Shared Services. Some areas could be audited through a self-assessment in future years.

Councillor Taylor referred to the audit of cyber risk timetabled for quarter 4 and asked if this could be brought forward. The Head of the Shared Internal Audit Service advised that ICT vulnerabilities would be audited in quarter 2 and this would inform later work. The Head of Finance and Shared Services added that auditors were kept updated with progress and if necessary the audit could be brought forward.

The Portfolio Holder commented that he was pleased that SIAS were proactive and he hoped that they would train people before problems were encountered. The Head of the Shared Internal Audit Service affirmed that this was part of the partnership. She added that planned audit work could be re-prioritised, for example, if the Audit Committee wished to have extra assurance about emerging risks.  Also there was the possibility of drawing down added days from SIAS if the need ever arose. Following a question from the Head of Finance and Shared Services the Head of the Shared Internal Audit Service confirmed that training for Audit Committee members was planned for June. She would advise members of the details.

RESOLVED –

that the Internal Audit Plan be approved.